Abstract
This chapter explains why governments tax and spend in the manner that one observes. The role of government in the economy is not limited to its tax and spending activities. Public policy also defines property rights, enforces contracts, regulates business activities, and often imposes price floors for various products. In recent years, government regulatory activities have expanded substantially. In fact, some economists argue that government expenditures are not an adequate measure of the economic significance of the public sector because they fail to register fully the importance of regulatory actions. Nonetheless, taxation and government expenditures are the most direct means by which the government influences the economy.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
